Factors that Can Cause a Change in Supply

What can cause a change in supply?

• Changes in demand

• Changes in production costs

• Changes in consumer preferences

• Changes in government regulations

How does a decrease in production costs affect supply?

• Supply remains unchanged

• Supply fluctuates

• Supply increases

• Supply decreases

What is productivity?

• The cost of producing a product

• The number of goods workers produce over a period of time

• The amount of resources used in production

• The demand for a product

How does an increase in productivity affect supply?

• Supply increases

• Supply decreases

• Supply remains unchanged

• Supply fluctuates

What can lower the cost of production and increase productivity?

• Changes in consumer preferences

• Changes in government regulations

• Changes in technology

• Changes in demand

How do new technologies initially affect the supply curve?

• Supply remains unchanged

• Supply decreases

• Supply fluctuates

• Supply increases

What do firms consider taxes to be?

• A cost of production

• A consumer preference

• A subsidy

• A government regulation

How does a decrease in taxes affect supply?

• Supply decreases

• Supply remains unchanged

• Supply increases

• Supply fluctuates

What are subsidies?

• Payments to decrease supply

• Payments to decrease productivity

• Payments to encourage or protect economic activity

• Payments to increase taxes

How does the removal of subsidies affect supply?

• Supply remains unchanged

• Supply decreases

• Supply fluctuates

• Supply increases